IPOs/Recent Issues – VERSATA –

Oakland, Calif.

Went public 3/3/2000 at $24 apiece

Filing Range:3.85 mil. shares @ $12 to $14

Shares Outstanding:37.9 mil. shares

Underwriters:Thomas Weisel Partners

Dain Rauscher Wessels/SG Cowen/DLJdirect


(Data in $ millions)


12/98 12/99

Total Revenue $3.95 $12.58

Net Loss -8.13 -32.6

The Company:

Versata’s software and services enables customers to rapidly deploy e-business software applications that can be modified quickly to meet constantly changing business requirements. The company’s e-business automation system utilizes a unique business rules automation technology that redefines how companies create, deploy and modify the critical e-business software applications used to transact their online business. As of Dec. 31, 1999, Versata had licensed its product to about about 500 customers worldwide for use in a wide range of business-to-business, business-to-employee and business-to-consumer software applications. More than 35 customers have purchased the company’s products and services for over $100,000, including Canadian Pacific Ships, El Paso Energy, Hilton Hotels, IBM, IM Group, Interim Services and ITT Fluid Technology. Versata has into a strategic marketing and development relationship with IBM to provide a single product offering that integrates its software with IBM’s WebSphere Application Server Advanced Edition.


Estimated net proceeds of $44.9 million will be used for product development and investment in technology infrastructure and for sales and marketing.

Venture Backers:

Morgenthaler Ventures, The Goldman Sachs Group, Vulcan Ventures Inc., Charles River Ventures, Alta Partners, Hambrecht & Quist, Sigma Partners

Board Members:

John Hewitt

Gary Morgenthaler

Naren Bakshi

Robert Davoli

Donald Feddersen

John Larson

Kanwal Rekhi

Eugene Wong